Energy Green Paper outlines blueprint for future policies

The Australian Government has released the Energy Green Paper - a document which includes policy approaches to ensure reliable and affordable energy that supports business competitiveness, lowers the cost of living and grows exports.

The Energy Green Paper was announced by Minister for Industry Ian Macfarlane at the International Mining and Resources Conference this week. Macfarlane said the paper sets a framework for the development of a coherent and comprehensive blueprint that will allow Australia to take full advantage of its natural strengths and consolidate its position as an energy superpower.

“Australia has world-class energy resources, and we must ensure that we have the right policy framework to use them to our full advantage in an increasingly competitive global market,” Macfarlane said.

“The government is resetting industry policy in Australia to build on our areas of competitive strength. The energy sector is one of those strengths and the Energy Green Paper will identify the ways in which we can improve the framework surrounding our energy assets.”

The green paper is built around four key themes - attracting energy resources investment; electricity prices; building gas supply and improving market operation; and security, innovation and energy productivity - all of which focus on “maximising our competitive edge and natural strengths”, stated Macfarlane.

“This includes addressing questions about how to ensure Australia’s vast gas reserves are accessed to the benefit of local industry, consumers and export markets,” he said.

“It also means ensuring Australia has access to the sophisticated and technologically skilled workforce to maximise our opportunities and it means having the information available to empower consumers with competition and choice to minimise their electricity costs.”

Macfarlane said the paper will take into account the Australian energy market’s transformation of recent years, as a result of declining demand and changing patterns of consumption. It considers questions about the privatisation of state- and territory-owned energy assets, as well as the challenges for ensuring sufficient gas supply, and is open to consideration of all energy resources and technologies.

Australian Industry Group (Ai Group) Chief Executive Innes Willox has revealed his support of the paper, saying it “outlines a number of encouraging reforms to improve Australia’s energy markets and ease the energy price pressure that industry has grappled with in recent years”.

“The paper addresses Ai Group’s concerns around rising gas prices and potential gas shortages,” Willox said, “… so we welcome initiatives outlined in the paper to increase gas production and reform gas markets so that they are more productive, competitive and transparent. Ai Group also believes that it would be wise to consider the economic and supply impacts of future LNG expansions before investments happen, rather than after.

“Ai Group strongly supports breaking down barriers to future energy investment and letting all technology options compete on their own merits, as the Energy Green Paper recommends. This includes having a serious debate about the opportunities presented by nuclear energy.”

In regards to the Renewable Energy Target, Willox claimed that “large reductions in the target would leave energy users worse off”. He stated, “The government should take a pragmatic approach to the RET, and pursue a bipartisan agreement on the basis of a variation of the 20% target.”

The government is open to consultation on the ways the goals in the Energy Green Paper could be achieved and welcomes feedback from interested stakeholders. Submissions will close on 4 November and will inform the development of the upcoming Energy White Paper outlining the government’s long-term energy policy.

The Energy Green Paper and submission details are available at www.ewp.industry.gov.au.